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CVD Absorption + Confirmation [Orderflow & Volume]

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This indicator detects bullish and bearish absorption setups by combining Cumulative Volume Delta (CVD) with price action, candlestick, and volume confirmations.

🔹 What is Absorption?
Absorption happens when aggressive buyers/sellers push CVD to new highs or lows, but price fails to follow through.
  • Bearish absorption: CVD makes a higher high, but price does not.
  • Bullish absorption: CVD makes a lower low, but price does not.


This often signals that limit orders are absorbing aggressive market orders, creating potential reversal points.

🔹 Confirmation Patterns
Absorption signals are only shown if they are validated by one of the following patterns:
  • Engulfing candle with low volume → reversal faces little resistance.
  • Engulfing candle with high volume → strong aggressive participation.
  • Pin bar with high volume → absorption visible in the wick.
  • CVD flattening / slope reversal → shift in aggressive order flow.


🔹 Signals
Bullish absorption confirmed → Green label below the bar.
Bearish absorption confirmed → Red label above the bar.

Each label represents a potential reversal setup after orderflow absorption is validated.

🔹Alerts
Built-in alerts are included for both bullish and bearish confirmations, so you can track setups in real-time without watching the chart 24/7.

📌 How to Use:
  • Best applied at key levels (supply/demand, VWAP, OR, liquidity zones).
  • Look for confluence with your trading strategy before taking entries.
  • Works on all markets and timeframes where volume is reliable.

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